HOW MANY TRADES DOES IT TAKE TO GET TO A MILLION DOLLARS?

When I was a kid there was a commercial on television in which a young man asked an age old question to a wise old owl. The question was, "Mr. Owl, how many licks does it take to get to the center of a tootsie pop?"
After taking the tootsie pop from the boy, the owl counted each lick, 1-2-3, and then bit the tootsie pop to get to the center.
The owl then told the boy quite matter-of-factly that it only takes three licks to get to the tootsie roll center of the tootsie pop.
This is the very same approach that I see most penny stock traders taking, but many of them are not getting to the tootsie roll center. The tootsie roll center in this case meaning untold riches.
You see, most penny traders are trying to make huge gains in a very short period of time, therefore trying to bite instead of lick. The result is many huge losses, discouragement, and the eventual failure of what could have been a huge success had they licked intead of bit.
Now I realize that I am writing like I'm an expert in the field, but I am not. I am, however, a very good observer, and have watched many people over the years get involved in the penny trading sector of trading stocks, only to lose everything. Including their dreams. All they had to do, in my opinion, is lick.
I may be completly wrong about my views. I may have no idea what I'm doing with my little experiment, but I am going to continue to move forward with it in total faith and confidence that I can complete my mission. That mission being to turn $400 into $1,000,000.
The following calculations are what convince me that it can be done. There are countless factors that will come into play as the funds become larger and larger. Each trade will have a greater impact on the stock in which it is being invested. Here is how it could work in a perfect stock market starting with $400, earning 20% per trade, and then reinvesting those gains into the next trade, then repeat those steps. Take a look at the list:

Trade #1. $400 + 20% = $480

#2. $480 + 20% = $576

#3. $576 + 20% = $691.20

#4. $691.20 + 20% = $829.44

#5. $829.44 + 20% = $995.33

#6. $995.33 + 20% = $1194.40

#7. $1194.40 + 20% = $1433.28

#8. $1433.28 + 20% = $1719.94

#9. $1719.94 + 20% = $2063.93

#10. $2063.93 + 20% = $2476.72

#11. $2476.72 + 20% = $2972.07

#12. $2972.07 + 20% = $3566.49

#13. $3566.49 + 20% = $4279.79

#14. $4279.79 + 20% = $5135.75

#15. $5135.75 + 20% = $6162.90

#16. $6162.90 + 20% = $7395.48

#17. $7395.48 + 20% = $8874.58

#18. $8874.58 + 20% = $10649.50

#19. $10649.50 + 20% = $12779.40

#20. $12779.40 + 20% = $15335.28

#21. $15335.28 + 20% = $18402.34

#22. $18402.34 + 20% = $22082.81

#23. $22082.81 + 20% = $26499.38

#24. $26499.38 + 20% = $31799.26

#25. $31799.26 + 20% = $38159.12

#26. $38159.12 + 20% = $45790.95

#27. $45790.95 + 20% = $54949.14

#28. $54949.14 + 20% = $65938.97

#29. $65938.97 + 20% = $79126.77

#30. $79126.77 + 20% = $94952.13

#31. $94952.13 + 20% = $113942.56

#32. $113942.56 + 20% = $136731.08

#33. $136731.08 + 20% = $164077.30

#34. $164077.30 + 20% = $196892.76

#35. $196892.76 + 20% = $236271.32

#36. $236271.32 + 20% = $283525.59

#37. $283525.59 + 20% = $340230.71

#38. $340230.71 + 20% = $408276.86

#39. $408276.86 + 20% = $489932.24

#40. $489932.24 + 20% = $587918.69

#41. $587918.69 + 20% = $705502.43

#42. $705502.43 + 20% = $846602.49

#43. $846602.49 + 20% = $1,015,923.51

Well, thats how it all adds up! I believe the key is to not get greedy. Have a plan and stick to it. Know what you want to make out of a trade without setting your sights to high. I set my goals between 5% to 35% on every trade with an average of about a 20% return per trade.
I see people in chat rooms everyday bragging about there 100% to 1000% returns on one trade. The sad story is is that they probably will lose alot of that on their next trade because they wait for those huge returns and in the waiting the stock they are in may take a turn for the worst in a matter of seconds.
Have a plan and stick to it no matter how well the stock is moving up. With penny stocks, just one trade could destroy you.

GOD BLESS

DISCLAIMER: Keep in mind that I am not a securities advisor nor am I suggesting that you purchase any stocks that I post on this blog. If you do invest in any stocks mentioned in this blog, you do so with the understanding that you could lose every penny of your investment. The purpose of this blog is to give would be investors encouragement and hope, and help them realize that you can make money in the stock market, even in a bad economy. I have not been paid to promote any stocks that I have written about in this blog. Please invest in stocks based on your own research. I'm a truck driver, not a financial advisor.

Please feel free to email me with stocks that you feel are a good play. Email me at investmentstratagies@yahoo.com